What’s Going on with Lufax Holding Ltd?
China’s Lufax Holding Ltd (LU) revealed today, May 24, that the company intends to repurchase as much as $300 million of its American depositary shares over the next six months.
Insider buying is also part of this repurchase plan, with Lufax’s Chairman, Co-Chief Executive Officer and Senior Management announcing their intentions to dip into personal funds to purchase up to a total of $5 million worth of the company’s American depositary shares over the next six months. Lufax Holding shares were trading up 1.96% in the pre-market this morning, at $12.48 a share.
What Does This Mean for LU?
Lufax Holding Ltd, which provides a technology-driven personal financial services platform for people in China, plans to repurchase up to $300 million of its American depositary shares, “...from time to time in the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means…” according to today’s press release. The repurchases will come from Lufax’s existing cash balance and, in the case of insider purchases, from the private funds of senior management taking part in this repurchase plan.
When it comes to insider buying, Lufax's position is that the senior management share purchase strategy, “…demonstrates the management’s confidence in the fundamental and long-term growth of the Company. After the purchase, the interests of the senior management will be even more closely aligned with those of the Company’s shareholders.”
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Lufax Holding Ltd is a technology-empowered personal financial services platform in China. The company address the large unmet demand for personal lending among small business owners as well as salaried workers in China, and provides tailor-made wealth management solutions to China's middle class and affluent population. Its platform has two hubs namely Retail Credit Facilitation Hub and Wealth Management Hub.